In the growing support of stablecoin in the crypto-verse, Binance has added a 3rd stablecoin in its listing. Binance has added the Paxos Standard Token (PAX) for trading, with two pairs. Furthermore, The stablecoin cryptocurrency can be traded against Binance Coin (BNB), and Bitcoin (BTC).
In their official blog, Binance wrote, “Fellow Binancians, Binance has opened deposits for Paxos Standard Token. Trading for PAX/BNB and PAX/BTC trading pairs will open at a later date and we will make a separate announcement prior to this.“.
Stablecoin on Binance
Paxos Standard Token has become the third stablecoin to be listed on Binance. The previous two stablecoins are TrueUSD (USDT) and Tether. Furthermore, BNB and BTC will pair with it, once available for trading.
To keep a check, Paxos has partnered with a reliable auditing firm to keep the records in check. Also, as stated in the official blog, the auditing firm will “release monthly balance attestations of the corresponding PAX and USD balances held/issued“.
Also, Changpeng Zhao, CEO of Binance, tweeted about this writing that “regulated stablecoins serve as a middle ground where regulators maintain control, but the token also offers far more freedom than traditional fiat for users. Hope more will copy/follow/improve, and for other fiat currencies too.”.
Warning issued by Binance
PAX tokens are not currently available for trading. Binance did this deliberately to make sure they have sufficient amount of the cryptocurrency. This will prevent from the price going up, disturbing the balance of the asset-pegged stablecoin.
Binance wrote a warning to its users. They stated “PAX is a stablecoin issued by the Paxos Trust Company and is designed to be pegged one-to-one with USD (1 PAX = $1 USD). Please be cautious if/when the price deviates from this ratio.“.
Furthermore, the deposits for Paxos Standard Token (PAX) has been open since September 21, 2018.